The Pain in Spain
Investors in the UK might be spooked by problems in Spain and the USA where the housing markets look rocky.
However, I think Spain’s problems are different to the UK. In Spain, the problems have been caused by a huge oversupply of new build in some areas. In most of the UK, this is not an issue as house building is much lower (though some areas in the north are clearly oversupplied with apartments)
Spain has also been hit by a new more rigorous regime in which investors have been stopped from hiding capital gains.
In the USA, there is also an oversupply of new build in some areas, plus a recent history of irresponsible lending to sub-prime borrowers on heavily discounted loans has been a problem. By contrast, the mortgage lending industry in the UK has been more responsible, at least until now. Main site: www.lettingfocus.com
Copyright: David Lawresnon 2007
However, I think Spain’s problems are different to the UK. In Spain, the problems have been caused by a huge oversupply of new build in some areas. In most of the UK, this is not an issue as house building is much lower (though some areas in the north are clearly oversupplied with apartments)
Spain has also been hit by a new more rigorous regime in which investors have been stopped from hiding capital gains.
In the USA, there is also an oversupply of new build in some areas, plus a recent history of irresponsible lending to sub-prime borrowers on heavily discounted loans has been a problem. By contrast, the mortgage lending industry in the UK has been more responsible, at least until now. Main site: www.lettingfocus.com
Copyright: David Lawresnon 2007
This entry was posted by lettingfocus, on
Friday, May 04, 2007.
